THE high-flying son of an Australian Australian Taxation Office boss was yesterday arrested over his alleged role in a fraud syndicate that police claim stole more than $165 million — one of the biggest white-collar crimes in Australia’s history.

The Daily Telegraph can reveal Australian Federal Police yesterday arrested Adam Cranston at his Bondi flat in one of 27 raids on homes and businesses across Sydney.

Adam Cranston, son of ATO boss Michael Cranston, is arrested at his Bondi flat yesterday over his role a $165 million fraud syndicate. Picture: Police MediaCranston was charged last night with conspiracy to ­defraud the commonwealth and is expected to face Central Local Court today.

The 30-year-old Cranston is the son of ATO deputy commissioner Michael Cranston, but there is no suggestion Michael Cranston had any involvement in or ­knowledge of the criminal syndicate.

Sources close to the investigation claim Adam was a “co-conspirator” in a group that used an elaborate tax scam to fund a celebrity lifestyle that included prime Sydney real estate, boats — and even a racing car team.

“This investigation has ­uncovered high-level organised activity; it is complex (and) sophisticated,” the source last night told The Daily Telegraph.

“I think it will take the police a long time to figure out exactly how much money (is involved).”

It is believed police will ­allege the fraud is one of the largest ever seen in Australia.

Investigators allege Sydney financial services firm SYNEP, of which Adam is co-chairman and managing ­director, was part of the ­operation.

There is no suggestion ATO Deputy Commissioner Michael Cranston had any involvement in the alleged scam.

Adam Cranston is escorted from the scene at Bondi yesterday. Picture: Police Media.Payroll contractor Plutus Payroll, controlled by SYNEP, was the centrepiece of the ­alleged hustle.

Police will claim it would allegedly funnel wage payments through a series of “second tier” companies. who then paid the ATO only a fraction of the required income tax.

The remaining withheld tax would then allegedly flow into the pockets of syndicate operators.

The scammers believed they had struck a sweet spot where each individual fraud was too small to prompt ­action from the ATO.

One source said it was “like saying to your schoolteacher, ‘I’ve done most of my homework, I’ll bring the rest next week’.”

The net tightened when both the AFP and ATO ­noticed alleged discrepancies in parallel investigations.

Re: ouch! this would hurt Taxmans son in Tax fraud.Reply #1 - May 18th, 2017 at 2:25pm

MICHAEL Cranston, the deputy commissioner of the Australia Taxation office, has been charged with abusing his position as a public official.

It comes after The Daily Telegraph today revealed Cranston’s son, Adam, was charged over his alleged role in a fraud syndicate that police claim stole more than $165 million — one of the biggest white-collar crimes in Australia’s history.

Australia Taxation Office deputy commissioner Michael Cranston (pictured today) has been issued a court attendance notice for abusing his position as a public official. Picture: Jenny EvansAustralian Federal Police yesterday arrested Adam Cranston at his Bondi flat in one of 27 raids on homes and businesses across Sydney.

He was charged last night with conspiracy to ­defraud the Commonwealth and faced Central Local Court today.

Adam Cranston, Daniel Rostankovski and Chris Guillan were granted bail under strict conditions, including that they surrender passports and not contact the alleged directors of the so-called second-tier companies that enabled the alleged fraud.

Mr Cranston was charged with conspiracy offences, with a total bail of $300,000, while his co-accused Rostankovski was also charged with blackmail, with a $100,000 bail.

Their fellow accused Daniel Hausman will finalise his bail application after lunch and another accused, Jason Onley, is expected to appear in court later today.

Adam’s younger sister Lauren Cranston was also arrested with the 24-year-old given the same charge as her brother when she was arrested in Picton, southwest of Sydney yesterday. She was granted conditional bail to face court on June 13.

So far, six people have been charged with conspiracy to defraud the Commonwealth, two with money laundering and another with extortion.